Kentucky's public universities received permission Tuesday to increase tuition as much as 8 percent over the next two years — potentially hiking yet again the sticker price of a college education.

With state funding falling and university expectations rising, the Council on Postsecondary Education decided it had to approve the allowed increase, which applies to in-state undergraduate students for the coming school year. But, it capped the increase at no more than 5 percent in either year.

Community-college tuition would be capped at a lower 4 percent increase over two years, the higher education council decided.

Universities will individually decide whether or how to adopt and spread out increase, which officials said could generate as much in $66 million in revenue.

"Since I've been on the council, the universities have been cut by the state every year. And every year, we have asked them to do more," said Pam Miller, chair of the higher-education council. "It's admirable that our campuses continue to maintain exceptional quality and service to students."

At the University of Louisville an 8 percent increase would put 2015-16 tuition and fees at $10,546 per semester — a cost that has already jumped 45 percent since 2008. University of Kentucky's undergrad cost could rise to $10,780. And community college costs would rise to $158 a credit hour, with a bond fee added.

A U of L spokesman said the administration expect to recommend a 5 percent tuition increase for next year as part of the budget presented to trustees before late June. It would then be held to a three percent maximum increase the following year. Universities are expected to submit their plans to the state by June 20.

The two-year approach "helps students and families plan ahead for college, moderates tuition increases over two years, and balances the need for our institutions to partially offset state budget cuts and increased fixed costs," said Bob King, president of the council.

More than 128,500 students are enrolled at Kentucky's public four-year universities.

The approved increase — which would average about 4 percent a year — is slightly more than the 3 percent hike set last year — the lowest in a decade. But it would still leave a more than $25 million shortfall across Kentucky post-secondary institutions for 2014-15, officials said.

Cost increases in student financial aid, health insurance and retirement are partly responsible for the shortfall, officials said. But the state earlier this month also cut nearly $14 million in general fund contributions for colleges and universities, including nearly $2 million for UofL. In all, universities in Kentucky have had their budgets cut nearly a dozen times since 2000.

That has increasingly shifted the financial burden to students. According to the College Board, 57 percent of graduates of public four-year colleges in 2012 had school debt, with the average debt of $25,000 — 22 percent higher than a decade ago.

To help offset state cuts, universities have increased fund-raising, with U of L now getting more money from its foundation than the state government. It recently announced that a seven-year-old capital campaign to endow teaching chairs, upgrade facilities and create grants and scholarships for students had topped $1 billion.

Louisville college freshman Eiman Zuberi said that while a scholarship helps her attend the U of L, the steadily rising costs of college are likely to deter some from attending a four-year university.

Her friend, Rachel McCoy, an 18-year-old freshman biology major, said academic scholarships help cover $2,500 of her annual tuition. But even with help from her family, she is running up debt.

"I owe $5,000 from this year alone," she said.

The council Tuesday also agreed to keep non-resident undergraduate rates at least two times the resident rate.

Officials said the council and various universities will revisit the ceilings for 2015-16 should there be a change in net General Fund appropriations.

Reach Chris Kenning at (502) 582-4697. Follow him at ckenning_cj.

Kentucky in-state undergraduate tuition and mandatory fees (1)

Institution

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

Change from 2007-08

University of Kentucky (2)

$7,199

$7,848

$8,241

$8,735

$9,260

$9,816

$10,110

40%

University of Louisville

$6,870

$7,564

$7,944

$8,424

$9,126

$9,662

$9,946

45%

Eastern Kentucky University

$5,682

$6,080

$6,312

$6,624

$6,960

$7,320

$7,536

33%

Kentucky State University

$5,320

$5,692

$5,920

$6,216

$6,534

$6,858

$7,060

33%

Morehead State University

$5,280

$5,670

$6,038

$6,492

$6,942

$7,284

$7,498

42%

Murray State University

$5,418

$5,748

$5,976

$6,264

$6,576

$6,840

$7,044

30%

Northern Kentucky University

$5,952

$6,528

$6,792

$7,128

$7,584

$8,064

$8,376

41%

Western Kentucky University

$6,416

$6,930

$7,200

$7,560

$8,084

$8,472

$8,722

36%

(1) Full-time comparison rates for resident undergraduate students taking 15 credit hours per semester for two semesters, or 30 credit hours per year.

(2) Beginning in 2004-05, undergraduate rates for UK are an average of upper and lower division rates.

(3) Beginning in 2011-12, figures for UofL, MoSU, NKU, and WKU include student requested and Council approved Special Use Fees.

Source: CPE Comprehensive Database.

By the numbers

• 8 percent — Maximum Kentucky public universities may raise tuition over next two years.